FRANCE 


THE  RECONSTRUCTION 
1919 


BROWN  BROTHERS  &  CO. 

59  WALL  STREET 
PHILADELPHL\  NEW  YORK 


■■   / 


BOSTON 


UNIVERSITY  OF  CALIFORNIA 
AT  LOS  ANGELES 


Gift   of   Oax^t.    and  Mrs. 
Paul  McBride  Perigord 


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FRANCE 


THE  RECONSTRUCTION 

1919 


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i    ' 

imiVERSITY  of  CALU^OKMiii 

AT 

LOS  AN€^LES 

UBRA^y 

BROWN  BROTHERS  &  CO. 

59  WALL  STREET 
PHILADELPHIA  NEW  YORK  BOSTON 


ii4^v^if\ 


DIRECTION    GENERALE 

DES    SERVICES    FRANCAIS 

AUX    ETATS    UNIS' 


Republique  Francaise 


New  York,  November  2  1  st    1919. 

Messrs.  Brown  Brothers  &  Co., 
59  Wall  Street. 
New  York  City. 

Dear  Sirs: 

I  have  read  with  much  interest  your  study  on 

the  physical  and  economic  reconstruction  of  France. 

I  believe  that  this  indicates  accurately   the  progress 

which  has  been  made  in   these   directions  since  the 

signing  of  the  armistice  and   faithfully  portrays  the 

situation  in  France  at  the  present  time.      It  gives  me 

great  pleasure  to  give  it  my  unqualified  approval. 

Yours  very  truly, 


Director    General    of    the    French 
Mission    in    the    United    States. 


FOREWORD 

THE   progress   of   the  reconstruction     in     France 
during  the  past  year  is  a  matter  which  America 
regards     with     great     interest.       The    return    of   the 

manhood  of  the  French  Nation  to  peaceful  occupa- 
9i 

Oi  tions  after  more  than  four  years  of  war,  the  rebuild- 

tH 
(~  ing  of  the  devastated   areas  and   the   general   read- 

P  justment  to  peace  conditions  have  not    been    unat- 

^  tended    by    difficulty.       However,    the   characteristic 

vitality  of  the  people  is  well  illustrated  in  the  solu- 
m 
1^  tion   which   is   being   found    for  each    of  these  prob- 

feS  lems.      The  international   friendship   of   France   and 

•4-S  America,  strengthened  by  the  association  in  the  late 

^  war,   has  linked   even  more  closely  than  before  the 

interest  and  welfare  of  the  two  countries.  The  ex- 
tent, therefore,  to  which  France  has  recovered  from 
the  world  conflict  is  of  unusual  importance  to 
America.  The  following  study  has  been  prepared 
by  our  Statistical  Department. 

BROWN  BROTHERS  &  CO, 

November,    1919 


Copyright,    1919 

by 

Brown   Bro-thers  &■  Co.,   New   York 


FRANCE 

THE  RECONSTRUCTION 

1919 

MORE  than  a  year  has  passed  since  the  signing  of 
the  armistice  and  the  liberation  of  the  invaded 
areas  of  Northern  France.  The  problems  of 
reconstruction  which  faced  the  French  Nation  at  the 
close  of  hostilities  were  far  greater  than  those  which 
confronted  England  and  the  United  States.  France 
had  to  solve  not  merely  the  questions  of  economic 
and  industrial  readjustment  to  peace  conditions.  In 
addition,  she  had  the  problem  of  rebuilding  the  in- 
vaded areas  which  had  been  devastated  and,  in  gen- 
eral, of  repairing  the  physical  damage  brought  about 
by  more  than  four  years  of  warfare. 

Rapid  strides  have  been  made  in  reconstruction 
since  the  conclusion  of  military  operations.  The 
work  has  been  pressed  forward  with  the  energy 
which  is  characteristic  of  the  French  people.  Much 
remains  to  be  done,  yet  the  progress  thus  far  ma}^ 
be  considered  indicative  of  the  future  and  the  prob- 
lems which  face  France  at  the  present  time  appear 
largely  of  temporary  character.  The  recuperative 
power  of  the  nation  which  was  strikingly  illustrated 
after  the  war  with  Germany  in  1870  is  shown  in  the 
speed  with  which  the  people  have  already  progressed 
in  the  work  of  reconstruction  and  of  national  read- 
justment to  peace   conditions. 

The  transfer  of  the  man  power  of  the  country 
from  military  service  to  industry  and  agricultiu-e  has 

7 


been  niacle  with  comparatively  little  difficulty.  In 
spite  of  the  fact  that  many  industries  in  Northern 
France  were  destroyed  the  country  has  no  special 
unemployment  problem.  The  magnitude  of  this 
accomplishment  may  be  realized  from  the  fact  that 
an  army  of  nearly  2,500,000  men  has  been  disbanded 
since  the  signing  of  the  armistice.  The  industries, 
moreover,  returned  rapidly  to  a  peace  basis.  As 
•early  as   February    1919   an   official   examination   of 


Barges  on  the  Meuse  Canal  Near  Rheims — 1919. 

a  number  of  government  and  private  plants  showed 
that  in  the  preceding  four  months  1,300,000  em- 
ployes out  of  a  total  of  1,700,000  had  been  trans- 
ferred from  war  to  peace  pursuits. 

Reconstruction  of  Transportation 

One  of  the  first  needs  of  the  invaded  areas  was 
the  restoration  of  the  means  of  transportation.  On 
November  11th  1918  the  destruction  of  railway  prop- 
crtv  amounted  to  945  miles  of  double  track  and  463 


I  ■■^■^ 

Rebuilding   Roads    in    the    Invaded    Districts. 

miles  of  single  track  railroad  not  including  143  miles 
of  road  serving  the  mining  districts.  By  September  1st 
1919,  however,  90%  of  the  double  track  road  and 
93%  of  the  single  track  road  had  been  permanently 
restored.  On  the  Northern  Railways  System  only 
four  miles  of  road  had  not  been  rebuilt  up  to  that 
time  and  operation  had  been  resumed  on  almost 
all  the  lines.  Through  trains  are  again  being  oper- 
ated between  Paris  and  Brussels.  The  following  table 
indicates  in  detail  the  extent  of  the  rehabilitation 
that  has  taken  place: 

Destroyed  Repaired  to 

Nov.  11th  1918       Sept.  1st  1919 

Northern  Railways — Double  track 364  miles  360  miles 

Single  track  336  miles  336  miles 

Eastern      Railways — Double  track 581  miles  493  miles 

Single  track 127  miles  95  miles 

TOTAL  Double  Track  945  miles  853  miles 

TOTAL  Single  Track  .'. 463  miles  431  miles 

In  addition,  of  the  railways  serving  the  mining 
districts  114  miles  out  of  143  miles  have  been  re- 
built.    Moreover,  of  1,160  railway  bridges  and  tun- 

9 


Repairing    Road    m    a    Marne    Village. 

nels  destroyed  588  have  been  reconstructed.  The 
work  on  the  waterways,  which  in  France  are  an  im- 
portant means  of  transportation,  has  been  nearly 
completed.  The  operation  of  boats  and  barges  from 
the  Paris  A^alley  to  Belgium  and  to  Eastern  France 
is  proceeding  under  practically  normal  conditions. 
Fquipment  for  electric  hauling  is  being  installed  on 
the  Marne  Canal  to  the  Rhine  and  on  the  canal  con- 
necting with  the  coal  fields  of  the  Saar.  The  col- 
lieries of  the  districts  of  the  North  and  of  the  East 
can  now  be  reached  by  navigable  waterways.  As 
far  as  highways  are  concerned  a  large  part  of  the 
damage  has  already  been  repaired.  There  are  about 
30,000  civilian  and  military  workers  engaged  in  re- 
])airing  the  roads  at   the  present  time. 

Housing  and   Agriculture 

The   total   numl^er   of   houses    partially   or   wholly 
destroyed  was  approximately  550,000.     It  should  be 

10 


rememl^erecl  that  French  houses  are  Iniilt  chiefly  of 
stone.  This  has  made  tlie  proljlem  of  repairs  and 
new  construction  unusually  difiicult.  Up  to  Septem- 
ber 1st  1919,  however,  the  following-  results  had 
been  accomplished: 

Temporarily  repaired  80,000 

Shelters  provided 16,225 

Shelters  under  construction  60,000 

Total  156,225 

1 


Ploughing   Battlefield    Near   Soissons — 1919. 

Nearly  a   million   of  the   ])eople   who  fled   from   their 
homes  at  the  time  of  the  invasion  have  returned  and 
out  of  4,023  communities  which   were  invaded,   mu- 
nicipal administration  has  been  resumed  in  3,872. 
Of  the  total  area  of  the  invaded  territory  of  France 

11 


6,950  s(|uarc'  miles  of  tilhible  lands  were  devastated 
1)\-  niilitar\-  operations.  \)y  Sei)tember  1st  1919, 
1,540  s(|uarc  milts,  an  area  lari^'er  than  the  State  of 
Rhode  Island,  had  been  made  fit  for  eultivation.  Mneh 
of  this  work  has  been  performed  nnder  handicap  of 
l)arl)ed  wire,  trenches  and  the  constant  danger  from 
unexploded  shells.  Since  the  signing  of  the  armis- 
tice, however,  more  than  25,000  acres  have  been 
cleared  of  l)ar1)ed  wire  and  aj)proximately  74,000,000 
cnbic  yards  of  trench  exca\ations  have  been  filled  in. 

Industrial  Reconstruction 

The  industrial  reconstruction  in  the  invaded  dis- 
tricts has  also  been  going  on  rapidly.  According 
to  official  re])orts,  U])  to  September  10th  1919  the  fol- 
lowing factories  had  resumed  operations  partly  or 
full}'  since  the  signing  of  the  armistice: 

Textiles  and  related  industry  124 

Clothing  21 

Food  Supplies  41 

Iron  and  Steel  51 

AI achinen-   30 

Chemical  Products  and  Oils 10 

Building  Materials,  Glassworks  and 

Sawmills 69 

Miscellaneous    21 

367 

Of  a  total  of  1,986  factories  destroyed  during  the 
entire  war  1,027  were  again  on  a  productive  l)asis  by 
Sept  end  )er  1st    1919. 

Revenues  and  Expenditures — Taxation 

The  cost  of  the  reconstruction  is  heavy.  At  the 
present  time  h^rance  is  reported  to  be  advancing 
about  Fes.  1,000,000,000  ($193,000,000)  a  month  for 

12 


this  purpose.  The  RepubHc  has  ah-eady  expended 
more  than  ten  bilhon  francs  in  restoring  the  devas- 
tated regions.  The  expenses  of  the  government  for 
the  year  1919  are  estimated  at  approximately  Fes.  16,- 
500,000,000  ($3,184,000,000)  to  which  should  he 
added  Fes.  4,000,000,000  ($772,000,000)  for  military 
pensions,  etc.  It  is  expected  that  in  accordance  with 
the   terms   of   the    Peace   Treaty   the   French    Govern- 


CHART  SHOWING  THE  PROGRESS  OF 

RECONSTRUCTION  IN  FRANCE 

TO   SEPTEMBER  1ST  1919 

;M;mmMmmM^^^M^  GUMMUNI  l  ils    INVAULU 

1      MUNICIPAL  ADMINISTRATION  RESUMED 

P^MMMM^J^m^^;^^™  DESTROYED  RAILHUAUS 

1        RECONSTRUCTED  RAILROADS 

W/////////////////////M//^^^^^                                AND  lUIMNLLb  ULblKUYLU 

1                                BRIDGES  AND  TUNNELS  RECONSTRUCTED 

^^^^^M^M^^^MmMM^^HOUShb  PARIIALLY   UK  WHOLLY  UhblKUYLU 

1                                              HOUSES  REPAIRED  and  UNDER  CONSTRUCTION 

M^MMM^M^MMMM^  TILLABLE   LANDS  DEVASTATED 

1                                                  TILLABLE  LANDS  RESTORED 

ment  will  eventual!}'  be  reimbursed  for  man}'  of  the 
expenditures  which  are  now  being  made. 

France  has  made  great  efforts  during  the  present 
year  to  meet  as  large  a  part  as  possible  of  these  ex- 
penditures by  means  of  taxation.  The  estimate  of 
receipts  for  1919  is  Fes.  10,000,000,000  ($1,930,000.- 
000).  This  would  make  the  French  tax  per  capita 
on  the  basis  of  the  total  population  vS.^2  as  compared 
with  $49  for  the  United  States.  In  the  case  of 
France,   however,   it    should   be   borne   in   mind   that 

13 


t 


Reaping    Near    F( 


the  inhabitants  of  the  invaded  regions  are  not  being 
taxed  in  the  present  year.  It  has  been  estimated,  there- 
fore, that  on  the  basis  of  the  actual  proportion  of  the 
population  laxed.  the  tax  per  capita  is  $56.  The 
inserted  chart  shows  the  comparative  amounts  of  the 
income  tax  now  in  force  in  France  and  in  the  United 
States.  So  far  during  the  current  year  actual  re- 
ceipts have  been  in  excess  of  the  budget  estimate  for 
this  period.  Collections  of  taxes  have  increased 
steadily  with  the  progress  of  the  reconstruction.  In 
connection  with  the  large  outlay  which  the  program 
of  the  government  requires  it  should  be  remembered 
that  France  is  no  longer  under  the  liandicap  in  re- 
gard to  the  collection  of  taxes  that  prevailed  during 
the  war.  Before  the  war  the  invaded  areas  furnished 
from  20%  to  25%  of  the  total  revenue  of  the  country. 
The  restoration  of  this  territory  in  addition 
to  Alsace-Lorraine  and  the  fact  that  the  man- 
hood of  the  nation  is  returning  to  productive 
pursuits   will   greatly   increase   the   taxing   power   of 

14 


$22,000 


20.000 


18.000 


16.000 


14.000 


X 

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12.000 


o 
< 


10.000 


8.000 


6.000 


4,000 


$  2.000 


> 

/ 

CHART  SHOWING  THE  AMOUNT 
OF  INCOME  TAXES  ON  INDIVID 
UALS(UNMARRIED)iN  FRANCE 
AND  THE  UNITED  STATES  FOR 
THE  YEAR  1919. 

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the  government.  During  the  first  eight  months  of 
the  current  year  Fes.  5,100,000,000  ($984,300,000) 
were  collected  from  taxes,  representing  an  increase 
of  Fes.  1,400,000,000  ($270,200,000)  as  compared  with 
the  corresponding  period  in  1018.  In  addition  to 
this  amount  taxes  levied  on  war  profits  during  the 
same  period  produced  h\-s.   1,()()7,U00,000  ($205,900,- 

15 


000)  making-  a  total  of  Fes.  C).167X)00,000  ($1,190,- 
200,000).  It  is  expected  that  after  a  year  has  passed 
the  nation  will  derive  in  taxes  about  Fes.  2,000,000,- 
000  (S38r),()()(),()00)  from  the  invaded  provinces  and 
Fes.  1,000,000,000  (8193,000,000)  from  Alsace-Lor- 
raine. 

Thrift 
The  financial  strength  of  France  has  always  rested 
in  the  large  amount  of  capital  distributed  among  all 
classes  of  the  population.  Thrift  is  a  national  char- 
acteristic of  the  French  people.  Xo  l)etter  evidence 
of  industr}-  and  thrift  need  l)e  given  than  the  record 
of  savings  bank  deposits  which  for  a  population  of 
less  than  40,000,000  showed  in  1913  more  than  15,- 
000,000  bank  books  representing  Fes.  5,829,700,000 
($1,125,153,000).  This  compares  strikingly  with  the 
situation  in  the  United  States  in  the  same  year 
where,  all  hough  the  per  capita  deposit  was  higher, 
the  total  number  of  savings  bank  depositors  was 
onlv   11,097,639.     The  amount  of  securities  held  by 


Photo  by  American  Committee  for  Deva.statpfl  France 

Removing   Barbed  Wire. 

16 


the  French  people  was  estimated  in  1913  at  Fes.  ILi,- 
000,000,000  ($22,195,000,000)  of  which  approximately 
one-third  were  securities  of  foreign  governments  and 
corporations.  This  made  France  one  of  the  largest 
creditor  nations  in  the  world.  In  1913  the  annual 
savings  of  the  population  were  estimated  at  a1)out 
$675,512,000. 


Photo  by  American  Committee  for  Devastated  !•  ranee 

Reconstructed  Farm  Buildings   Near  Coucy  le  Chateau. 

Position  of  French  Government  Bonds 

A  large  part  of  the  securities  held  by  the 
French  people  is  represented  by  the  bonds  of  the 
French  Government.  These  bonds  or  rentes  are 
distributed  among  a  great  number  of  small  in- 
vestors and  hold  a  i)osition  which  in  the  United 
States  would  fairh'  correspond  to  a  consider- 
able proportion  of  the  deposits  in  savings  banks. 
This  has  given  the  rentes  an  unusual  degree  of  sta- 
bility even  in   times  when  the  affairs  of  the  French 

Nation  were  at  a  crisis. 

17 


Belleau  Wood  on  the   Right  and  on   the   Left 


Plidlo  liy  AtiiiTicMM  ( '(iinniitli'c  for  Devustated  Fraiioe. 

Temporary  Homes  in  District  of  the  Aisne. 
18 


Town  of  Lucy  Le  Bocage  as  They  Appeared  in   1919. 


k 


^ 


Plioli)  li\    Ainerican  Committee  fur  l)c\a^itate(l   Fraiire, 

Type  of  Permanent  Home  Being  Built  in   Invaded  Area. 

19 


The  following  table  shows  the  yield  of  Freneh  VJo 
perpetual  rentes  at  averao'e  prices  for  the  years  from 
1860  to  1913.  The  stability  of  this  issue  which  may 
be  considered  representati\-e  compares  favorably  with 
that  of  the  bonds  of  the  United  States  Government 
during  the  same  period  as  indicated  by  the  average 
yield  of  the  principal  outstanding  bond  issues: 

French  Z%  U.    S.   Govern- 

Year.  Perpetual   Rentes.  ment    Bonds. 

1860     Franco-Austrian  War  ended.      4.33%  5.50% 

\'^(o\  4.38        American     6.97 

1862  4.28       Civil  6.51 

1863  4.39 

1864  4.54 
1865-69                                                    4.36 

1870  Franco-Prussian  \\'ar.  4.77 

1871  The   Commune.  5.51 

1872  Estal)lishment  of  die  Repul)lic.  5.47 

1873  5.34 
1874-76                                                   4.04 

1877  4.27 

1878  4.06 
1879-80  3.65 
1881  Zy:^ 

looZ-OJ  Oj J  *The    comparison    with 

1  QQ/^  on  1  CC7  ^^^   bonds   of   the    United 

IcoO-JU  O.J/  States    is    not    continued 

lom    n-  1  r\r  further  since  the  war  debt 

l&yi-y.i  J.UO  of  the  I'nited   States  had 

1 0C\r   -r\r\  O  n  i  practically  been  redeemed 

ifeyo-  (JU  Z.'iH  by    18S1    and    the    market 

mm    A"  ■>  rv""  prices  of  the  bonds  up  to 

IVUl-UO  O.U.I  the    passage    of    the    Fed- 

1  i\r\r    ■\  r\  '*   1  O  ^''^l      Reserve     .\ct     were 

1  iUO-lU  O.iU  artificially    stimulated    by 

1<)in    1^  \  ^9  '''^    circulation    privilege. 

The  economic  \itality  of  the  French  ])eople  is  in- 
dicated l)y  the  fact  tliat  ditring  the  war  the  country 
absorl)cd  war  loans  amounting  to  ??)  billion  francs 
in  rentes  in  addition  t()  temporary  d'reasury  Cer- 
tificates averaging  about  30  billions.  1die  last  issue 
of  rentes  h:id  more  than  seven  milb'on  subscribers. 
During  the  present  >ear  the  sul)scriptions  to  Treas- 

20 


War. 

5.79 

5.33 

4.89 

4.75 

4.65 

4.31 

4.20 

3.54 

Indian 

4.14 

Wars. 

4.37 

3.88 

3.06* 

ur}-  Bonds  for  Xatioiial  Defence  have  been  extraor- 
dinary. In  each  of  the  months  of  July,  August 
and  September  approximately  Fes.  2,500,000,000 
($482,500,000)  were  subscribed.  The  loan  of  Fes. 
1,500,000,000  offered  by  the  City  of  Paris  in  June 
1919  was  many  times  oversubscribed.  According  to 
official  reports,  in  the  first  eight  months  of  1919 
the  excess  of  deposits  in  savings  banks  over  with- 
drawals amounted  to  more  than  Fes.  1,000,000,000 
($193,000,000). 

Debt 

During  the  war  the  total  debt  of  the  French  Re- 
public increased  about  four  and  one-third  times. 
This  increase  was  less  in  proportion  than  that  of 
the  United  States  or  of  any  of  the  larger  Furopean 
nations  engaged  in  the  war  with  the  exception  of 
Italy.  As  of  April  30th  1919  the  gross  debt  of  the 
Republic  was  approximately  534,843,000,000.  Of  this 
the  external  debt  amounted  to  $5,147,000,000  and 
carried  an  interest  charge  of  about  $300,000,000.  Ac- 
cording to   official   estimates  the  annual   interest   re- 


Wine   From  the   Vineyards  of  Southern   France. 


Unloading  Steamers  in  the  Harbor  of  Rouen. 


(|iiireincnts  of  tlic  foreign  debt  are  far  less  than  either 
the  amount  which,  ])efore  the  war,  France  invested 
every  year  in  foreign  countries  or  the  amount  which 
was  spent  yearl}-  in  I'^rance  ])y  foreign  visitors  before 
l')]4.  h^rom  iIk-  total  of  the  external  debt  should  be 
deducted  S2,v-)45,1S7,()( )()  consisting  of  advances  of 
uione_\-  and  materials  made  ])y  h^'ance  to  her  allies. 
'Idle    net    amount    of    the    foreign    obligations    of   the 

21 


French   Republic,  therefore,   in   May   1919  was  only 
$2,801,813,000. 

The  following-  table  which  is  prepared  from  official 
data  indicates  the  increase  in  the  gross  debt  of 
France  during  the  war  period  as  compared  with  that 
of  England  and  of  the  United  States: 

France  England  United  States 

1914 $  6,598,436,200        $  3,179,284,450        $  1,282,044,346* 

1918 28,452,710,000  36.120,369,892  21,075,931,189 

*March    31st    1917. 

The  Peace  Treaty 

Lentil  the  settlement  of  the  terms  of  the  Peace 
Treaty  the  exact  amount  of  money  and  materials 
which  France  will  receive  as  an  offset  to  the  national 
debt  remains  to  be  determined.  However,  it  should 
be  borne  in  mind  that  whate\er  is  paid  in  the  form 
of  indemnity — at  the  present  time  the  proposed 
amount  is  Fes.  200,000,000,000  ($38,600,000,000)— 
the  loss  of  national  resources  incident  to  the  war 
should  be  many  times  more  than  compensated  by 
the  recovery  of  Alsace-Eorraine  and  the  control  of 
the  Saar  Basin.  Alsace-Eorraine  has  an  area  of 
5,603  square  miles  with  a  population  (1910)  of  1,- 
874,014.  Before  the  war  these  provinces  were  agri- 
culturally self-supi)orting.  With  the  development 
which  took  place  in  the  steel  industr}^  in  France  dur- 
ing- the  war  the  mineral  resources  of  Alsace-Eor- 
raine are  extremely  important.  The  deposits  of  iron 
ore  in  Eorraine  are  estimated  at  2,330,000,000  metric 
tons  occupying-  an  area  of  about  168  s(|uare  miles. 
They  constitute  one  of  the  principal  deposits  in  all 
Europe.  The  output  in  1913  was  approximately 
20,000,000  tons   of   ore.      In   addition,   the   coal   pro- 

23 


duction  of  the  Saar  X'alley  in  1913  amounted  to 
about  16,000,000  tons.  With  the  control  of  these 
lundainental  raw  materials  France  should  assume  a 
leading-  position  in  luiropean  industry.  The  potash 
deposits  in  Alsace-Lorraine  are  estimated  at  300,- 
000.000,000  cubic  meters.  It  is  prol)able  that  France 
will  in  the  future  be  able  to  ex])()rt  a  considerable 
amount  of  this  material.  These  provinces  are  im- 
])ortant    centers   of   the    manufacture    of   cotton    and 


Dockino    and  Warehousing    Facilities    Near    Bordeaux. 

^\■()()len  i^oods,  g'lass,  chemicals  and  (ttlu'r  products. 
In  1912  there  were  1.026  textile  ])lants  emi)loying- 
76,328  persons.  These  included  1.900,000  cotton 
spindles  which  at  that  time  were  one-fourth  the  total 
number  in  France. 

24 


Speedy  Recovery  After  Previous  Wars 

In  connection  with  the  present  (lel)t  of  France 
there  should  be  remembered  the  financial  record  of 
the  nation  after  previous  wars.  In  1830.  only  fifteen 
years  after  the  close  of  the  Napoleonic  Wars,  prac- 
tically all  the  war  debt  of  France  had  been  redeemed. 
The  cost  of  the  war  with  Germany  in  1870-1871 
amounted  to  SI, 792, 424, 600  not  including-  the  loss  of 
the  provinces  of  Alsace  and  Lorraine.  In  si)ite  of 
the  fact  that  the  country  had  suffered  from  invasion 
the  war  indemnity  exacted  by  Germany  which  in- 
cluding the  interest  amounted  to  Fes.  5,300,000,000 
was  paid  in  26  months,  or  six  months  l)elore  tlie  due 
date.  To  do  this  France  raised  two  loans.  The  first 
loan  of  Fes.  2,000,000,000  was  otlered  in  June  1871: 
to  this  loan  Fes.  5,000,000,000  were  su1)scri]x'd  and 
onh'  45%  of  the  total  subscriptions  was  allotted. 
To  "the  loan  of  Fes.  3,000,000,000  of  Jul\-  1872  no 
less  than  Fes.  44,000,000,000  were  subscril^ed  and 
onlv  12'^f  was  allotted.  The  recovery  from  the 
War  of  1870  as  from  the  Napoleonic  A\'ars  was 
remarkalde  and  during  the  next  43  years  France 
went  through  a  period  of  rapid  territorial  and  indus- 
trial expansion.  In  1914  the  national  wealth  of 
France  was  conservatively  estimated  at  vS50,000,000,- 
000  and  the  annual  income  of  the  French  people  at 
$6,000,000,000.  After  1870  France  made  large  addi- 
tions to  her  colonial  j)OSsessions  which  in  point  of 
size  in  1914  were  second  only  to  the  l>ritis]i  Fm]>ire. 

Industrial  Outlook 

The  iron  and  steel  industries  of  France  were  great- 
ly stimulated  by  the  war.  The  invasion  of  the  min- 
ing and  industrial  districts  of  the  North   Ijrought  to 

2.S 


the  front  the  latent  resonrces  of  the  nation.  New 
and  larti-er  tactories  were  built  and  deposits  of  iron 
ore  i)articularl\  in  Xorniandx'  and  Loire  Inferieure 
were  intensively  developed.  As  a  result  the  produc- 
tion of  steel  and  iron  in  1917  was  equal  to  two- 
thirds  of  the  tonnage  produced  in  1913.  'idiis  illus- 
trates the  remarkable  possibilities  of  the  industrial 
tuture  of  France  now  that,  in  addition  to  the  re- 
turned mines  in  the  North,  she  has  obtained  control 
of  the  immense  resources  of  Alsace-Lorraine  in  iron 


Ploughing  by  Tractor  in  the   Valley  of  the  Oise. 


4 


and  of  the  Saar  A  alley  in  coal.  The  furnaces  of 
the  returned  province  of  Lorraine  had  before  the 
war  an  annual  production  in  excess  of  6,000,000  tons 
of  pig  iron.  It  is  believed  that  France  will  hold  the 
first  place  in  luu'ope  in  the  production  of  iron  ore 
and  the  second  place  in  the  production  of  steel  and 
pig  iron. 

The  increased  capacity  in  the  production  of  iron 
and  steel  will  probably  be  reflected  in  a  general  in- 
dustrial  develojMTient.      During  the  war  the  country 

26 


greatly  increased  its  use  of  mechanical  implements 
and  labor-saving  machinery.  A  demand  for  these 
things  once  created  and  maintained  over  so  long  a 
period  of  time  may  be  expected  to  continue.  This 
will  mean  a  further  enlargement  of  French  industry. 
Moreover,  with  the  demand  for  iron  and  steel  goods, 
not  only  for  the  rehabilitation  of  Europe  but  in  gen- 
eral throughout  the  world,  France  has  the  opportun- 
ity of  eventualh'  becoming  a  large  exporter  of  these 
materials. 

Agriculture 

With  the  upsetting  of  the  balance  of  consumption 
and  production  due  to  the  war  France  has  been  re- 
quired to  import  food  supplies  and  provisions  in 
large  quantities.  This  situation  in  connection  with 
the  need  for  materials  for  the  rehabilitation  of  the 
invaded  districts  has  been  instrumental  in  depress- 
ing the  rates  of  foreign  exchange,  particularly  ex- 
change with  the  United  States.  As  a  result  im- 
ported food  has  been  made  very  expensive.  Before 
the  war  France  was  practically  self-supporting  and 


H  , 1 1" \' e s 1 1  n ^     in 


Valley    of    the    Aisne. 


27 


the  present  position  of  exchange  is  serving  as  a 
stinnilus  to  resume  the  normal  production  of  food 
products  as  rapidly  as  possible.  It  is  not  probable 
that  the  country  will  continue  long  to  depend  on 
foreign  sources.  At  the  present  time  the  land  is 
being  cultivated  with  the  same  thoroughness  which 
was  characteristic  before  the  war.  It  is  believed 
that  after  one  or  two  years  have  passed  the  country 
will  again  raise  enough  to  support  its  entire  pop- 
ulation. 

France  is  a  land  of  intensive  agriculture.     In  1914 
it   was   officially   reported    that    58,678,576   acres   or 
about   45%    of   the    total   area   of   the    country   was 
under  cultivation.     Large  estates  are  not  numerous. 
In  fact  one  of  the  greatest  sources  of  the  strength 
of   the   French    Nation   has   been   its   large   class   of 
small  landowners.     It  has  been  estimated  that  there 
are  twelve  million  householders  of  whom   nine  mil- 
lion   live    in    their    own    homes.      Although    France 
proper  is  only  about  four  times  as  large  as  the  State 
of  New  York,  before  the  war  if  was  one  of  the  lead- 
ing nations  of  the  world  in  the  production  of  cereals, 
wine   and   beet   sugar.      In    1912   on   an  area   of   16,- 
238,151    acres   France   produced   336,272,000  bushels 
of  w^heat  valued  at  S486,948,130.     The  vineyards  in 
cultivation  covered  an  area   of  3.832,468  acres   and 
produced    1,569,169,800    gallons    of    wine    valued    at 
$344,511,450.      In   the   same  year   the   production   of 
sugar  beets  reached  7,354,748  tons  from  which  about 
two  billion  pounds  of  sugar  were  refined. 

Colonies 

The  colonial  possessions  of  France  will  probably 
play  an  increasingly  important  part  in  the  future 
economic  life  of  the  nation.   They  are  rich  in  natural 

28 


\i  lO — Vineyards;    Wine    Ready    for    Shipment. 

resources  and  form  a  huge  storehouse  for  raw  ma- 
terials of  which  France  and  in  fact  all  Europe  stand 
in  need.  In  addition  they  are  a  natural  outlet  for 
French  manufactured  goods. 

The  French  colonies  cover  a  territory  one  and  one- 
quarter  times  as  large  as  the  United  States  and  Alaska 
and  have  a  population  of  approximately  58,000,000 
people.  They  are  in  all  parts  of  the  world  and  in- 
clude large  possessions  in  Northern  and  Central 
Africa,  Southeastern  Asia  and  Oceania.  The  possi- 
bilities of  development  of  these  lands  are  indicated 
by  the  increase  of  their  total  foreign  trade  during 
the  war  period.  In  1913  the  foreign  trade  of  the 
colonies  amounted  to  i?633, 500,000.  By  1917  the 
total  had  reached  $729,983,000.  This  was  about  one- 
filth  of  the  total  foreign  trade  of  France  proper  in 
1913.  The  provinces  on  the  Mediterranean  coast  of 
Northern  Africa  appear  to  Ije  in  a  position  for  earliest 
development.  The  most  important  of  tliese  is  Al- 
geria wliicli  is  treated  practically  as  a  part  of  France. 
Algeria  produces  large  quantities  of  cereals,  fruits, 
wine,  zinc  and  iron  ore.  llie  forests  cover  an  area 
of  6,559,500  acres  producing  an  annual  revenue  of 
over  a  million  dollars.     Tunis  is  another  important 

29 


French  i)r()\incc  in  Xorlhern  Africa,  in  1918  its 
agricultural  products  were  9,406,292  bushels  of 
wheat,  10.427,213  bushels  of  barley,  3,813,713  bushels 
of  oats  and,  in  addition,  14,555,800  gallons  of  wine 
and  3,900,000  gallons  of  olive  oil.  The  estimated 
date  crop  for  1918  was  88,184,890  pounds.  The  value 
of  the  mineral  output  in  1917  was  al)()ut  $13,000,000. 
Algeria   and   Tunis   have  developed   a   large   railway 


Morocco — Old    and    New    Methods    of    Harvesting 

30 


milea.q-c  in  recent  years.  At  present  there  are  over 
3,000  miles  in  operation  in  these  provinces.  The 
trade  of  IMorocco  increased  a1)<)nl  three  times  in 
the  years  from  1911  to  1910.  In  1911  the  foreign 
commerce  amounted  to  $17,000,000.  In  1913  it  was 
more  than  $34,000,000  and  in  1916  the  total  was 
approximately  $60,000,000. 

The  tropical  possessions  of  France  furnish  large 
quantities  of  rubber,  rice,  raw  silk,  palm  oil,  sugar 
and  similar  products.  Annam,  one  of  the  provinces 
in  French  Indo-China,  produces  more  than  800  tons 
of  raw  silk  annually.  In  1916  French  Indo-China 
exported  1,345.360  tons  of  rice.  New  Caledonia,  a 
French  possession  in  the  Pacific,  produces  in  normal 
times  a  substantial  part  of  the  world's  supply  of 
nickel. 

Foreign   Trade 

The  indications  are  that  France  will  engage  more 
actively  in  foreign  trade  than  l^efore  the  war.  Her 
control  of  basic  materials  stimulated  by  a  wide  de- 
mand, |)articu]arl\-  in  .Vsia  Minor  and  the  Far  h^ast 
where  France  has  increased  the  sphere  of  her  trade 
influence,  should  have  a  decidedly  favorable  efi'ect  on 
the  foreign  commerce  of  the  country.  This  in  turn 
would  serve  to  counteract  the  unfavorable  trade 
balance  and  consecjuently  to  restore  French  foreign 
exchange  to  a  more  normal  position. 

The  facilities  of  France  for  foreign  trade  as  far  as 
ports  and  shipping  are  concerned  were  greatly  de- 
veloped during  the  war.  According  to  Lloyd's  Reg- 
ister of  Shipping  the  total  tonnage  registered  under 
the  French  flag  in  the  present  year  is  larger  than  in 
1913.  In  June  1919  France  had  more  than  2,000,000 
tons  of  shipping  which  does  not  allow  for  the  ton- 

31 


Port  of  Marseilles  in    1919. 


32 


nag-e  of  German  ships  she  is  to  receive  under  the 
Treaty  of  Peace.  Bordeaux  and  Marseilles,  the 
principal  ports,  have  l^een  enlarged  and  splendidly 
equipped.  Nearly  six  miles  of  modern  concrete 
docks  were  constructed  during  the  war  at  Bordeaux 
in  addition  to  large  warehouses  and  railway  ter- 
minals. Bordeaux  is  the  Atlantic  terminus  for  many 
Continental  trade  routes  to  Great  Britain,  Africa  and 
the  Americas.     jNIarseilles.  which  holds  a  correspond- 


Dccks  Near  Bordeaux. 


ing  position  for  the  Alediterranean  countries,  is  at 
present  actively  engaged  in  the  development  of  her 
large  natural  port.  Three  and  three-quarters  miles 
of  quays  are  under  construction  and  at  the  present 
time  there  is  a  program  which  aims  to  supply  the 
port  with  20  miles  of  quays  as  compared  with  8% 
miles  existing  before  the  war.  Under  the  terms  of 
the  Peace  Treaty  France  is  to  acquire  all  the  former 
German   interests  in  the  port   of   Rotterdam.     This 

33 


port  with  its  facilities  for  river  transportation  is  con- 
veniently situated  to  serve  Alsace-Lorraine  and 
should  be  of  great  value  to  French  commerce  of 
the  future. 

Conclusion 

France  has  earned  the  confidence  of  her  allies  in 
the  great  war.  There  is  no  reason  why  this  confi- 
dence should  not  be  fully  maintained.  The  military 
and  economic  vitality  of  the  Republic  surmounted 
the  trials  of  the  critical  moments  of  the  world  war 
and  that  same  vitality  is  now  surmounting  the  much 
smaller  problems  of  reconstruction.  Whatever  the 
burdens  which  the  war  has  imposed  on  France  in 
common  with  the  other  nations  engaged,  France 
has  demonstrated  that  she  is  al)le  and  prepared  to 
carry  them.  The  record  of  her  achievements  in  the 
war  and.  since  the  signing  of  the  armistice,  in  peace 
IS  convincing  evidence  of  the  strength  and  the  solid- 
ity of  the  nation.  The  people  have  recently  given 
their  answer  to  Bolshevism  b}'  returning  an  over- 
whelming majority  of  the  sui)porters  of  the  govern- 
ment in  the  national  elections. 

France  will  recover  from  this  war  as  surely  as  she 
has  recovered  from  previous  wars.  With  the  present 
opportunity  in  the  fields  of  industry  and  trade  the 
new  France  should  become  greater  even  than  before. 
America  is  deeply  interested  in  the  recovery  of 
France  and  of  Europe  if  for  no  other  reason  than 
that  she  has  made  a  national  investment  in  Europe 
which  in  advances  of  money  alone  amounts  to  ap- 
proximately ten  billions  of  dollars.  The  restoration 
of  normal  conditions  in  France  is  only  a  matter  of 
time  and  is  a  prol)lem  which  France  herself  is  capa- 
ble  of   solving   indei)en(lently.      However,    the    more 

34 


rapidly  this  restoration  can  be  accomplished  the 
greater  the  advantage  to  America  and  to  the  world 
as  a  whole.  To  the  people  of  the  United  States  is 
given  the  opportunity  of  lending"  their  help  and  re- 
sources to  bridge  the  transition  period  and  thereby 
to  bring  about  in  comparatively  little  time  the  com- 
plete restoration. 


35 


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